delegation to lithuania 10-12 july background note cont

DIRECTORATE GENERAL FOR INTERNAL POLICIES

POLICY DEPARTMENT D: BUDGETARY AFFAIRS

Delegation to Lithuania 10-12 July

BACKGROUND NOTE CONT DELEGATION TO LITHUANIA

10-12 JULY 2012

Abstract This document aims to provide background information to the Committee on Budgetary Control Delegation to Lithuania, due to take place on 10-12 July 2012. The factual information below deals with various subjects related to Lithuania as regards basic data, political structure overview, economy overview, industry sectors, EU funds, Nuclear Power Plants and State Agencies'.

28/06/2012 PE EN

This document was requested by the European Parliament's Committee on Budgetary Control. AUTHOR(S) Ms Catarina Duarte Gomes RESPONSIBLE ADMINISTRATOR Mr Niels Fischer Policy Department D: Budgetary Affairs European Parliament B-1047 Brussels E-mail: [email protected] LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR To contact the Policy Department or to subscribe to its newsletter please write to: [email protected] Manuscript completed in July 2012. Brussels, © European Union, 2012. DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorized, provided the source is acknowledged and the publisher is given prior notice and sent a copy

Delegation to Lithuania - Background Note _______________________________________________________________________________________

CONTENTS

CONTENTS 3

LIST OF TABLES 4

1. BACKGROUND INFORMATION ON LITHUANIA 5

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1.1. Basic Data on Lithuania

1.2. Political Structure Overview

1.3. Economy Overview

1.4. Main industries sectors

2. EU FUNDS

2.1. Cohesion Policy

2.2. European Investment Bank (EIB)

3. NUCLEAR POWER PLANTS

3.1. Decommissioning Nuclear Facilities

3.2. Ignalina Nuclear Power Plant

3.3. Ignalina Nuclear Power Plant Decommissioning

3.4. Financial Assistance for the Decommissioning of Ignalina Nuclear Plant

3.5. Decommissioning projects

3.5.1. Interim Spent Fuel Storage Facility (ISFSF) - B1 project

3.5.2. Solid Waste Management and Storage Facilities (SWMSF) - B2/B3/B4 project

3.6. Decommissioning Funding Shortfall

3.7. Decommissioning Experience on Greifswald Nuclear Power Station

3.8. Ignalina Nuclear Power Plant vs Greifswald Nuclear Power Station

3.9. Visaginas Nuclear Power Plant

4. STATE AGENCIES'

4.1. National Audit Office of Lithuania (NAOL)

4.2. Radioactive Waste Management Agency (RATA)

4.3. State Nuclear Power Safety Inspectorate (VATESI)

4.4. Central Project Management Agency (CPMA)

ANNEX A - IIDSF - OVERVIEW OF GRANTS AGREEMENTS, CONTRACTS AND DISBURSEMENTS

ANNEX B - DECOMMISSIONING PROJECTS

BIBLIOGRAPHY

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LIST OF TABLES

TABLE 1

Financial allocation per Programmes and fund 11

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TABLE 2

EU funds for decommissioning of Ignalina - 1999-2013 period

TABLE 3

Ignalina financial programme

TABLE 4

Decommissioning Funding shortfall

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1. BACKGROUND INFORMATION ON LITHUANIA

1.1. BASIC DATA ON LITHUANIA General Topographic Map

Source: Economist Intelligence Unit Report March 2012

Total land area: 65,300 sq km including 35% arable, 12% permanent crops, 7% permanent pastures, 31% forest and woodland

Population: 3.24 million (January 1st 2011)

Capital: Vilnius

Main cities Vilnius Kaunas Klaïpeda Šiauliai Panevėžys Alytus Marijampolė

Languages: Lithuanian is a member of the Baltic group of languages (along with Lettish and the now extinct Old Prussian) and is the first language of over 80% of the population; there are sizeable minorities of native Russian and Polish speakers

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Religion: Roman Catholic 79%, Russian Orthodox 4.1%, Protestant (including Lutheran and Evangelical Christian Baptist) 1.9%, other or unspecified 5.5%, none 9.5%

Currency: The national currency, the litas (plural litai; LTL), which is divided into 100 centas, replaced the transitional talonas (coupon) in June 1993. Average exchange rates in 2011: LTL 2.48 : US$ 1; LTL3.45 : € 1

Time two hours ahead of GMT

Natural resources: Limestone, clay, quartz sand, gypsum sand, dolomite, gravel, oil deposits, iron ore and granite

1.2. POLITICAL STRUCTURE OVERVIEW

Official name Republic of Lithuania

Form of state: Democratic parliamentary

Legal system: Based on the Constitution adopted on 25 October 1992 amended on 13 July 2004

National legislature: Unicameral Parliament or Seimas. It has 141 members that are elected for a four-year term. 71 members are elected by popular vote and 70 members elected by proportional representation

Electoral system: Universal suffrage over the age of 18 years

National elections: A parliamentary election was held in Lithuania in two stages on 12 and 26 October 2008. Next parliamentary election will be on October 2012. A presidential election was held on 17 May 2009. Next election due in May 2014.

Head of state: Dalia Grybauskaitè, elected on May 17, 2009, standing as an independent candidate and becoming the first woman President in the country's history. Ms Dalia Grybauskaitè became the first Lithuanian EU Commissioner from 2004 to 2009 for the Financial Programming and the Budget within the José Manuel Barroso-led Commission.

National government:

The current government is a centre-right one, formed between the Homeland Union - Lithuanian Christian Democrats, the Liberal and Centre Union, and the Liberal Movement under the leadership of the Homeland Union's Andrius Kubilius.

Main political parties: Homeland Union - Lithuanian Christian Democrats (TS-LKD) - Group of the European People's Party (PPE) in the European Parliament (4 Members)

Social Democratic Party of Lithuania (LSDP) - Group of the Progressive Alliance of Socialists and Democrats (S&D) in the European Parliament (3 Members)

Order and Justice (TT) - Europe of Freedom and Democracy Group (EFD) in the European Parliament (2 Members)

Liberal and Centre Union (LiCS) - Group of Alliance of Liberals and Democrats for Europe (ALDE) in the European Parliament

Liberal Movement (LRLS), formally the Liberals' Movement of the

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Republic of Lithuania - Group of Alliance of Liberals and Democrats for Europe (ALDE) in the European Parliament (1 Member)

Labour Party (DP) - Group of Alliance of Liberals and Democrats for Europe (ALDE) in the European Parliament (1 Member)

Christian Party (KP)

Electoral Action of Poles in Lithuania (AWPL or LLRA) - European Conservatives and Reformists Group in the European Parliament (1 Member)

Lithuanian Peasant Popular Union (LVLS)

Seimas Composition Homeland Union - Lithuanian Christian Democrats (TS-LKD) - 46 Members

Social Democratic Party of Lithuania (LSDP) - 24 Members

Order and Justice Political Group (TT) - 17 Members

Liberal and Centre Union (LiCS) - 13 Members

Liberal Movement (LRLS) - 12 Members

Labour Party (DP) - 10 Members

Christian Party (KP) - 8 Members

Non-affiliated members - 11 Members

Prime Minister: Andrius Kubilius (Homeland Union - Lithuanian Christian Democrats)

Seimas speaker: Irena Degutiené

Key ministers: Agriculture Kazimieras Starkevičius (TS-LKD) Culture Arūnas Gelūnas (Independent) Economy Rimantas Žylius (Independent) Education and Science Gintaras Steponavičius (LRLS) Energy Arvydas Sekmokas (Independent) Environment Gediminas Kazlauskas (Independent) Finance Ingrida Šimonytė (Independent) Foreign Affairs Audronius Ažubalis (TS-LKD) Health Raimondas Šukys (LiCS) Interior Raimundas Palaitis (LiCS) Justice Remigijus Šimašius (LRLS) Defense Rasa Juknevičienė (TS-LKD) Social Security and Labour Donatas Jankauskas (TS-LKD) Transport and Communications Eligijus Masiulis (LRLS)

Administrative Division

10 counties, subdivided into 60 municipalities

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1.3. ECONOMY OVERVIEW


2007 2008 2009 2010 2011 20121 20132

Real GDP growth ( % ) 9.8 2.9 -14.8 1.4 5.8 1.8 2.5

Unemployment (av; %) 4.3 5.8 13.7 17.8 15.4 15.0 14.9

Inflation (av; % ) 5.7 10.9 4.5 1.3 4.1 2.7 2.8

Current account balance (% of GDP) -14.56 -13.34 4.67 1.46 - 0.33 -0.97 -1.41

Government balance (% of GDP) -1.0 -3.3 -9.5 -7.1 -5.03 -4.0 -3.5

Public Debt (% of GDP) 16.9 15.6 29.6 38.7 36.34 38.1 34.5

Export of goods and services (% of real change)

3.0 11.6 -12.7 17.4 13.75 3.0 3.5

Import of goods and services (% of real change)

10.7 10.3 -28.4 17.9 15.16 3.4 4.0

1.4. MAIN INDUSTRIES SECTORS Major industries: agriculture, industry and services

GDP composition by sector (2011 est.) :

agriculture 3.6%, industry 30%, services 60%

Agriculture products:

wheat, wood, barley, potatoes, sugar beets, wine and meat

Industry: electronics, chemical products, machine tools, metal processing, construction material, household appliances, food processing and light industry (including textile), clothing and furniture, oil refineries and shipyard

Exports products: Mineral products in the lead, transport, electric equipment, biotechnology, plastics and laser technology

Export partners: Russia, Germany, Estonia, France, Latvia and The Netherlands

Imports products: Mineral fuels and oil, vehicles, electrical and electronic equipment and plastics

Import partners: Russia, Latvia, Germany, Poland, Estonia and The Netherlands

1 EIU Report March 2012 forecast 2 EIU Report March 2012 forecast 3 EIU Report March 2012 estimates 4 EIU Report March 2012 estimates 5 EIU Report March 2012 estimates 6 EIU Report March 2012 estimates

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Delegation to Lithuania - Background Note _______________________________________________________________________________________ Services This sector contributes to 60% of the GDP, and the most important sectors are the information technology and communications. There has been a rapid development of the ICT infrastructure (13 of the largest 20 ICT companies in the Baltic region are based in Lithuania), and the government has invested in the development of research and development centres. Lithuania has developed a network of 5 R&D valleys specializing in laser, nanotechnologies, semiconductors physics, electronics, engineering, biotech, energy, environment, ICT and agriculture. The valleys are based in the capital Vilnius, in Kaunas and in the port city Klaipeda. Telecommunications in Lithuania have been regulated and privatised since 2002. The use of internet and broadband has rapidly increased in recent years and 60% of households have access to the internet. Agriculture Agriculture contributes around 3.6% to the GDP. Arable farming is the main form of agricultural activity in Lithuania. It accounts for 3 million hectares of the total 3.5 million hectares of agricultural land. Cereals, grain, fodder and rape seed are the most commonly grown agricultural products. Forests cover 30% of the country and in recent years forests have been sold off to the private sector in the hope of establishing a competitive forestry sector. Industry As a share of GDP, the industrial sector represents 30% and employs 30% of the active population. The Lithuanian industry is diverse and covers the following sectors: biotechnology, laser technology, furniture, machinery and electronic equipment. The biotechnology industry of Lithuania is one of the most sophisticated industries in Central and Eastern Europe. 15 research institutions carry out chemical and biochemical research for pharmaceutical purposes. 16 institutions (including five major universities) train biotechnology and business specialists in cooperation with both domestic and international biotechnology companies. The production of bio fuel has been developing in the last decades. Annually Lithuania produces an excess of biomass that can be converted into bio fuel. There are 11 science, research and development centres dedicated to research in the laser technology industry. In Lithuania, laser technology has grown at a rate of 20% per year. Lithuania is the world leader in terms of ultra fast parametric light generator production and has 80% of the world's market share for high energy lasers. The furniture has grown over the years due to its abundance of natural resources, competitive prices and location (which allow a quick delivery to foreign customers). The metal processing and manufacturing of electronic equipment contributes 4.9% of GDP and 64% of production is exported. This industry has grown due to the flexible labour force, and investment in research and development. Lithuania actively seeks investment in its growing automotive industry, which has become focused on the manufacturing of electronic components. Small and medium-sized companies dominate the automotive industry and these companies have had to adapt to the competitive industry and have become one of the most efficient industries in Lithuania. Many major automotive companies such as BMW, Mercedes-Benz, Renault, Volkswagen and Volvo have already drawn upon Lithuania’s specialised workforce, particularly utilising their high knowledge of electronics.

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Main economic trends


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2. EU FUNDS

2.1. COHESION POLICY Lithuania will receive 6.8 € billion from EU Structural Funds for the 2007-2013 period. Lithuania has 4 programmes: "Development of Human Resources" and "Technical Assistance" supported by the European Social Fund (ESF) and "Economic Growth" and "Cohesion Promotion" supported by the European Regional Development Fund (ERDF) and the Cohesion Fund (CF). Table 1 - Financial allocation per Programmes and fund

OPERATIONAL PROGRAMMES FUND COMMUNITY AMOUNT IN €

Development of Human Resources

ESF 935 018 009

Technical Assistance ESF 93 288 718 ERDF + CF 3 098 853 525 ERDF 1 966 562 132

Economic Growth

CF 1 132 291 393 ERDF + CF 2 648 332 571 ERDF 1 475 388 221

Cohesion Promotion

CF 1 172 944 350

TOTAL 6 775 492 823 Total ESF 1 028 306 727 Total ERDF 3 441 950 353 Total CF 2 305 235 743 Source: European Commission - DG Regio - Cohesion Policy 2007-2013

The main priorities of the Cohesion Policy for the 2007-2013 period are transport infrastructure and accessibility with 1.57 € billion of funds. Lithuania plans to invest nearly 2.4 € billion of funds on cleaning up the environment, promoting sustainable growth and combating climate change (1.1 € billion target the effects of climate change and 437 € million to promote the use of renewable energy and improve energy efficiency). R&D will be supported with 1.48 € billion. 516 €million will be invested in support of business and 240 € million will be spent on developing and improving information and communication technologies (ICT) infrastructure and services. As regards to the operational programme "Cohesion Promotion"7, one of the priority axis is: environment and sustainable development. The objective is to improve the environment, with focus on improving the energy efficiency and the expected impact is to renovate/construct water supply and waste water systems in 220 communities; to reach 100% of deposition of waste in landfills (meeting EU requirements) and to upgrade 200 public buildings in terms of energy saving. The priorities of this axis are: renovating and developing water supply and waste water treatment systems; creating modern waste management

7 European Commission - Regional Policy - Lithuania - Operational programme "Promotion of Cohesion"

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systems; improving air quality and increasing the efficiency of energy generation and consumption as well as the use of renewable energy resources.

2.2. EUROPEAN INVESTMENT BANK (EIB) Between 2006 and 2010, the European Investment Bank (EIB) lent 1.3 € billion for projects in Lithuania. 42% of the funding was for infrastructure, 23% for transport and 17% for health and education. In the transport sector, the EIB financed the purchase of modern diesel-powered freight locomotives, which replaced older, less energy-efficient ones.

3. NUCLEAR POWER PLANTS

3.1. DECOMMISSIONING NUCLEAR FACILITIES All power plants have a life span of about 30 years, newer plants are designed for a 40 to 60 year operating life. At the end of the life span of any power plant, it needs to be decommissioned, decontaminated and demolished so that the site is made available for other uses. For nuclear plants, the term decommissioning includes all the progressive dismantling of the plant and all clean-up of radioactive contamination. The International Atomic Energy Agency (IAEA) has defined 3 options for decommissioning, the definitions of which have been internationally adopted:

Immediate Dismantling Allows for the facility to be removed from regulatory control relatively soon after shutdown or termination of regulated activities. The final dismantling or decontamination activities begin within a few months or years, depending on the facility. Following removal from regulatory control, the site is then available for re-use

Safe Enclosure Postpones the final removal of controls for a longer period, usually in the order of 40 to 60 years. The facility is placed into a safe storage configuration until the eventual dismantling and decontamination activities occur.

Entombment Entails placing the facility into a condition that will allow the remaining on-site radioactive material to remain on-site without the requirement of ever removing it totally. This option usually involves reducing the size of the area where the radioactive material is located and then encasing the facility in a long-lived structure such as concrete, that will last for a period of time to ensure the remaining radioactivity is no longer of concern

Source: http://www.world-nuclear.org/info/inf19.html

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3.2. IGNALINA NUCLEAR POWER PLANT Ignalina Nuclear Power Plant (INPP) is the only nuclear installation in Lithuania. INPP is located in the north-eastern part of Lithuania (Visaginas), near the borders with the Republic of Latvia and the Republic of Belarus. INPP is equipped with two RMBK8-1500 reactors (soviet design plant). Compared to the Chernobyl NPP reactors RMBK-1000, the Ignalina RMBK-1500 reactors are more powerful. The units are light-water and graphite-moderated types. Construction started in 1978 and reactors came on line in 1983 and 1987, with a 30 year design life. Four units were originally planned to be built on INPP site, but the construction of the third unit was suspended in 1988 and the construction of the fourth unit had never started. As a condition of entry into the European Union, Lithuania agreed in 1999 to close existing units of the station. The project includes decommissioning of Unit 1 and Unit 2 and auxiliary facilities. The process is divided into 2 phases. The first phase started in 2004 and continues until 2013. The second phase is scheduled for 2014-2029.

3.3. IGNALINA NUCLEAR POWER PLANT DECOMMISSIONING

Following the IAEA options for decommissioning (described on point 3.1), the Lithuanian Government has chosen the immediate dismantling strategy for Ignalina.

A Final Decommissioning Plan (FDP) has been approved in 2005 by the Ministry of Economy of Lithuania and an amended version was foreseen for 20109.

The FDP is a technical document which details:

the strategy for facility dismantling;

an estimate of the decommissioning costs and schedule;

an outline of the decommissioning methods and techniques;

a quantification of waste produced by the decommissioning;

a conceptual assessment of decommissioning safety and environmental impact assessment programme;

plans for preparatory works, stages and facility designs.

The FDP should cover the whole INPP decommissioning period (two Units, auxiliary equipment, interim spent fuel and radioactive waste storage facilities).

The European Parliament noted with concern that a detailed decommissioning plan has not been finalised yet. The European Parliament asked to the European Commission to provide a detailed long-term financial planning of the decommissioning projects and describe the scope of the EU financing required to accomplish this plan10.

8 Reaktor Bolshoy Moschnosti Kanalniy (High Power Channel-type Reactor) 9 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance

Programme data" (COM (2011) 432 final) 10 European Parliament resolution of 5 April 2011 on the efficiency and effectiveness of EU

funding in the area of decommissioning nuclear power plants in the new Member States (2010/2104(INI) - P7-TA(2011)0123

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3.4. FINANCIAL ASSISTANCE FOR THE DECOMMISSIONING OF IGNALINA NUCLEAR PLANT

In the context of the negotiations for accession to the European Union, Lithuania committed itself to close the INPP. Recognising the exceptional social, economic and financial burden of this commitment, the European Union decided to provide a financial contribution to Lithuania. For the 1999-2013 period, the total EU funding for the Decommissioning of Ignalina amounts 1.367 € million. The European assistance is designed to support Lithuania efforts in the decommissioning of the nuclear power plants as well as to support measures in the energy sector to mitigate the economical consequences of the early closure, such as11:

the nuclear safety in the nuclear facilities;

the establishment and upgrade of the waste management infrastructure required to start decommissioning activities;

measures to support the nuclear safety authorities in safe assessment and licensing of decommissioning projects;

the environmental upgrading of energy infrastructure and modernisation of conventional energy production capacity as a replacement for the lost nuclear energy production capacity in line with the legislation of the European Union;

the enhancement of security of supply and energy efficiency;

measures to support plant personnel in maintaining a high level of operational safety in the periods prior to the closure and during the decommissioning of the reactor units.

To assist Lithuania, the European Community set up the Ignalina International Decommissioning Support Fund (IIDSF) at the European Bank for Reconstruction and Development (EBRD). The IISDF became operational in 2001 on the basis of a Framework Agreement signed between the Republic of Lithuania and the EBRD. In addition, since 2004, part of the financial assistance to Lithuania has also been made available as a direct support to the country in order to implement provisions of Art. 2.412 of the Accession Protocol through a National Agency: the Central Project Management Agency (CPMA).

11 European Commission - Commission Staff Working Paper - Impact Assessment -

Accompanying document to the Proposal for a Council Regulation on Union support for the nuclear decommissioning assistance programmes in Bulgaria, Lithuania and Slovakia

12 "The Ignalina Programme shall include measures to support plant personnel in maintaining a high level of operational safety at the Ignalina Nuclear Power Plant in the periods prior to the closure and during the decommissioning of the said reactor units"

Source:http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2011-54&language=EN

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Delegation to Lithuania - Background Note _______________________________________________________________________________________ Table 2 - EU funds for decommissioning of Ignalina - 1999-2013 period

DATE ASSISTANCE PROVIDED UNDER

EU AMOUNT MANAGED BY

From 1999 to 2003 Pre-accession Period

PHARE Programme 210 € million EBRD

From 2004 to 2006 Accession Period "Programmed Instrument Mechanism"

PROTOCOL 4 of the Act to the Accession Treaty

320 € million EBRD CPMA

From 2007 to 2013 Post-accession Period

Council Regulation (EC) 1990/2006

837 € million EBRD CPMA

Total 1.367 € million Source: European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges (p.12 and p.30)

The EBRD manages the public funds allocated to the programmes for decommissioning and monitoring the financial management of these programmes. The EBRD carries out the budget tasks entrusted to it by the European Commission in line with the requirements of the Financial Regulation13. Information about CPMA responsibilities is detailed on point 4.4. By 2013, the available funding (all sources) for the decommissioning of INPP will be approximately 1.450 € million. Table 3 - Ignalina financial programme

IIDSF

€ MILLION

CPMA

€ MILLION

NOT YET ALLOCATED

€ MILLION

Bilateral Donors14 33,0

EU Contribution 663,9 331,6

Interests Generated 51,9 1,0

371,5

748,8 332,6 371,5 TOTAL

1452,9

Source: European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges (p.30)

13 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance

Programme data" (COM (2011) 432 final) 14 Belgium, Denmark, Germany, Ireland, Greece, Spain, France, Luxembourg, the Netherlands, Austria,

Poland, Finland, Sweden, the United Kingdom, Norway and Switzerland

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The European Parliament noted that a high share of the funds was used for energy projects and not for the aim of the financial assistance, namely NPP decommissioning15. The purpose of the IIDSF is to finance projects supporting the closure and decommissioning of INPP and measures in the sector of energy. As regards to the 748,8 € million of the IIDSF16: 6,1 € million have been allocated to EBRD operational costs, 410,7 € million were allocated to decommissioning projects, 273,8 € million were allocated to energy projects and 58,2 € million have not been allocated yet. Decommissioning projects includes engineering, licensing documentation and tools for dismantlement and decontamination. But important projects prepared under the IIDSF (particularly the dismantlement) were cancelled or transferred to CPMA by INPP's management decision in 201017. Concerning energy projects, the following projects18 have been financed by IIDSF:

Studies for least-cost development of the Lithuanian electricity and gas sectors;

New flue gas desulphurisation facilities (completed in 2009) enabled Elektrenai to operate 600MW of its capacity with heavy fuel oil and gas in compliance with EU emission requirements;

A new state of the art 455 MW Combined Cycle Gas Turbine (CCGT) power plant Unit at the Elektrenai site. The n ew CCGT unit will result in a major increase in generation efficiency, plant reliability and availability, and a significant decrease in environmental pollution;

Support to LITGRID AB in the development of the power connection between Lithuania and Poland.

An overview of Grant agreements, contracts and disbursements via the IISDF is presented on the Annex A19. Concerning the 331.6 € million of CPMA funds20: 1,5 € million have been allocated to CPMA operational costs, 135,3 € million were allocated to decommissioning projects, 36,1 € million were allocated to energy projects and 157,7 € million have not been allocated yet. The European Parliament asked to the European Commission to study ways of altering the EU's methods of financing decommissioning operations and simplifying the rules on management of the funds in such a way that they do not affect the safety and security of the decommissioning operations.21

15 European Parliament resolution of 5 April 2011 on the efficiency and effectiveness of EU


16 European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges (p.30)

17 Information provided by the EBRD 18 Information provided by the EBRD 19 Document provided by the EBRD - March 2012 20 European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in

Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges (p.30) 21 European Parliament resolution of 5 April 2011 on the efficiency and effectiveness of EU


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Delegation to Lithuania - Background Note _______________________________________________________________________________________ As regards to future activities to be financed from EU allocated amounts within the 2007-2013 period, Members of the European Parliament feel further issues need clarifying, including whether there is still a need for further amounts to be allocated for energy projects or whether it is necessary to focus on the decommissioning projects22.

3.5. DECOMMISSIONING PROJECTS The 3 stages of INPP decommissioning are:

Initial Stage The nuclear plant is suspended permanently. It's cleaned and decontaminated using available equipment. Spent nuclear fuel and accumulated radioactive waste is transferred to interim storage. Low-radioactivity units can be removed.

Dismantling This phase should start after the first stage immediately. Radioactive equipment and inner layer of radioactive buildings are removed during the dismantling. This is the most difficult phase from the technical point of view.

Demolition of the Buildings Buildings are to be demolished or left for further use. They are to be demolished in the same way as other industrial facilities except that thorough checks are to be conducted for the trace amounts of radioactivity in the debris.

Source: http://www.iae.lt/en/activity/decommissioning/ The following list23 presents important projects that have been funded by the EU:

Safe maintenance of unit 1 and unit 2;

VATESI (Lithuanian nuclear regulator) support;

Provision of consultant support to INPP;

Interim spent fuel store (B1);

Solid waste management and storage facility (B2/B3/B4);

Free release measurement facility;

Detailed decommissioning plans for specific building;

Preparation of a decommissioning database and planning tool;

Primary circuit decontamination;

Landfill facility and buffer storage;

Radiological characterisation.

Large infrastructural projects such as B1 project and B2/B3/B4 project are implemented via IISDF. Projects related to safe maintenance of reactor units in shutdown condition and implementation of decommissioning projects are implemented via CPMA. Current and completed projects are described on Annex B.

22 European Parliament resolution of 5 April 2011 on the efficiency and effectiveness of EU funding in the

area of decommissioning nuclear power plants in the new Member States (2010/2104(INI) - P7-TA(2011)0123

23 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance Programme data" (COM (2011) 432 final)

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3.5.1. Interim Spent Fuel Storage Facility (ISFSF) - B1 project The objective is to build a new dry type Interim Spent Fuel Storage Facility (ISFSF) for the spent nuclear fuel, unloaded from the Unit 1 and Unit 2; and to design, construct and install all the necessary equipment to pack the spent nuclear fuel into special containers, to seal them and to transport them from the storage pools to the ISFSF24. The contractor of this project is NUKEM-GNS Consortium. An initial contract was signed in 2005 and an amendment to the contract has been signed in 2009. The scope of the Contractors' tasks includes the design, preparation of licensing documentation, manufacturing and delivery of equipment, construction, installation, testing and commissioning of the ISFSF25. B1 project is significantly delayed (4 years26). Reasons27 of this delay are:

Inaccurate fuel characterization data relevant for the design of the spent fuel casks;

Protracted licensing approval processes in Lithuania for the technical design and safety case;

Difficulties with the main contractor of which the owner was changed several times;

Insufficient commitment and deficiencies in project management on both, the contractor and owner side, in the early phase of the project.

3.5.2. Solid Waste Management and Storage Facilities (SWMSF) - B2/B3/B4 project

The objective is to build a new INPP Solid Waste Management and Storage Facilities (SWMSF). The project includes two independent components to be implemented simultaneously: B2 (New Solid Waste Retrieval Facilities Design and Construction) and B3/B4 (New Solid Waste Management and Storage Facilities Design and Construction)28. The contractor of this project is NUKEM Technologies. In 2005, a contract was signed between INPP and NUKEM for design, construction and commissioning of the new SWMSF29. B2 project is 44 months delayed; B3/B4 project is 34 months delayed30. Reasons31 of these delays are:

Both parties entered into the contractual arrangement, although changes in contract scope and technical requirements were only known by both parties before contract signature;

24 Ignalina Nuclear Power Plant site - http://www.iae.lt/static/failai/b1_and_b234.pdf 25 Information provided by NUKEM-GNS consortium 26 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance

Programme data" (COM (2011) 432 final) 27 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance

Programme data" (COM (2011) 432 final) 28 Ignalina Nuclear Power Plant site - http://www.iae.lt/static/failai/b1_and_b234.pdf 29 Information provided by NUKEM 30 European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in

Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 31 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance

Programme data" (COM (2011) 432 final)

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Contractor submissions of technical design and safety case was late and to an unacceptable quality from the owners point of view;

Contractor under-assessment of technical approval procedures in LT;

Protracted national approval system, involving numerous different parties;

Delay in settlement of contractual disputes: Project Management Unit (PMU) requested by EBRD fund rules to support INPP on commercial level was not proactively involved.

3.6. DECOMMISSIONING FUNDING SHORTFALL As a result of delays on the implementation of the projects and with the rise of project prices, additional costs have arisen. The total financing need for INPP decommissioning (latest cost estimation) is estimated to 2 930 € million (risks included). The table below shows the funding shortfall for INPP. Table 4 - Decommissioning Funding shortfall

LATEST COST ESTIMATE

(MILLION EURO)

AVAILABLE FUNDING

ALL SOURCES BY 2013

(MILLION EURO)

FUNDING SHORTFALL

(MILLION EURO)

2 930 1 450 1 480

Source: European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges (p.19) For the 2014-2020 period, a Regulation has been proposed by the European Commission. This regulation establishes the Ignalina Programme laying down rules for the implementation of the Union's financial support for measures connected with the decommissioning of the INPP (units 1 and 2). The amount proposed for Ignalina Programme is 229 € million (current prices), for the period 2014 to 2017, This amount is in line with the European Commission proposal for the next multi-annual financial framework for the period 2014-202: "A Budget for Europe 2020"32. The general objective of this Programme is to reach an irreversible state within the decommissioning process, keeping the highest level of safety.

32 European Commission - Proposal for a Council Regulation on Union Support for the Nuclear

Decommissioning Assistance Programme in Bulgaria, Lithuania and Slovakia.

19


The proposed regulation established ex ante conditionalities33 that Lithuania shall fulfil by 1 January 2014:

Compliance with the Euratom Treaty's acquis in the area of nuclear safety, in particular regarding the transposition into national law of the Council Directive 2009/71/Euratom on nuclear safety and the Council Directive 2011/70/Euratom on the management of spent fuel and radioactive waste;

Establish in a national framework a financing plan identifying the full costs and the envisaged funding sources required for the safe completion of decommissioning of the nuclear reactor units, including management of spent fuel and radioactive waste, concerned by this Regulation;

Submit to the Commission a revised detailed decommissioning plan broken down to the level of decommissioning activities, schedule and corresponding cost structure based on an internationnally recognized standard for decommissioning cost estimation.

Lithuania shall provide the European Commission with the necessary information about fulfilment of the above mentioned ex ante conditionalities, at the latest by the time of the budgetary commitment in 2014.

3.7. DECOMMISSIONING EXPERIENCE ON GREIFSWALD NUCLEAR POWER STATION Greifswald Nuclear Power Station (GNPS) is situated in the Land of Mecklenburg-Western Pomerania in the North Eastern part of Germany and was the largest nuclear power station in East Germany. GNPS was initially composed by 8 units (the construction of units 6, 7 and 8 was stopped in 1990, and the unit 5 was only in trial operation) equipped with WWER 440/V-230 reactors, the first generation of soviet design plant. Decommissioning of Greifswald nuclear power station (since 1995) is the world's largest project of nuclear plants. The socio-economic benefits of using local industry and labour in the region were an important factor in choosing immediate dismantling. The Energiewerke Nord GmbH (EWN) is the company who's in charge of decommissioning and dismantling the GNPS. All the reactors (units 1 to 5) had been shut down in 1990. After choosing immediate dismantling, strategies to get licenses were developed as well as the technical concepts for decommissioning, dismantling and disposal of the left material. The objective is to realize everything by own personnel. EWN is changing the Greifswald site into an important centre of energy and technology in Mecklenburg-Western Pomerania. According to EWN, the decommissioning activities will be finished in 2013/201434. And the overall budget (according to EWN in June 2011) is 3.2 billion Euros35.

33 Council of the European Union - Proposal for a Council Regulation on Union support for the

nuclear decommissioning assistance programmes in Lithuania - 2011/0363 (NLE) - 10771/1/12 - Rev 1

34 OECD/NEA workshop on Radiological Characterisation for Decommissioning Studsvik, April 2012 - EWN - http://www.studsvik.com/Documents/OECD%20semninar%202012/25.pdf

35 The Greifswald decommissioning project - Energiewerke Nord GmbH - June 2011 (http://www.iaea.org/OurWork/ST/NE/NEFW/WTS-Networks/IDN/idnfiles/CuttingTechniqueWkp-Germany2011/EWN_Project_Overview__06__2011.pdf)

20


3.8. IGNALINA NUCLEAR POWER PLANT VS GREIFSWALD NUCLEAR POWER STATION Some comparisons are made between Ignalina Nuclear Power Plant and Greifswald Nuclear Power Station. For both power plants the immediate dismantling option has been chosen.

IGNALINA NUCLEAR POWER PLANT

GREIFSWALD NUCLEAR POWER STATION

Reactors Type RMBK (Reaktor Bolshoy Moschnosti Kanalniy) Light-water and graphite-moderated type

KGR WWER (Water-cooled water-moderated power reactor) Russian pressurized water reactor

Designer Soviet designer Soviet designer Number of reactors 2 reactors 5 reactors (1 reactor on trial

operation) Capacity 1500 MW each reactor 440 MW each reactor Construction start 1977 / 1978 1973 Shut down 2004 /2009 1990 Decommissioning strategy Immediate Immediate Decommissioning final date 2029 2013/2014

3.9. VISAGINAS NUCLEAR POWER PLANT The closure of Ignalina Nuclear Power Plant slashed the volume of electricity produced in the Baltic States. Energy resources used in Lithuania are mostly imported (which is imported from a single country: Russia). Lithuania and the Baltic States are not connected to the European electricity grid, making them more vulnerable. The new nuclear power plant in Visaginas is a regional project between Lithuania, Latvia, and Estonia. Visaginas NPP project is a part of the Baltic Energy Market Interconnection Plan (BEMIP) and aims to develop a unified energy market in the Baltic Sea Region. The BEMIP plan involves electric power interconnections with Poland, Sweden and Finland.

4. STATE AGENCIES'

4.1. NATIONAL AUDIT OFFICE OF LITHUANIA (NAOL)36 The National Audit Office of Lithuania (NAOL) is the Supreme Public Audit Institution, accountable to the Seimas (Parliament) of the Republic of Lithuania. Its main function is to supervise the lawfulness and effectiveness of the management and use of the State property and the implementation of the State budget. The NAOL carries out financial and performance audits. The methodologies of financial and performance audits are also used to perform State Budget revenue audit. In addition, the

36 http://www.vkontrole.lt/en/about_tasks.shtml

21


Parliament of the Republic of Lithuania has entitled the NAOL to audit the European Union financial assistance allocated to the Republic of Lithuania. The NAOL carries audits of:

State budget implementation;

use of State funds;

management, use and disposal of the State property;

implementation of the budget of the State Social Insurance Fund;

implementation of the budget of the Compulsory Health Insurance Fund;

use by respective fund management institutions and beneficiaries of funds of the European Union allocated to the Republic of Lithuania and implementation of programmes in which Lithuania participates;

use of State budget funds allocated to municipal budgets.

4.2. RADIOACTIVE WASTE MANAGEMENT AGENCY (RATA)37 The Radioactive Waste Management Agency (RATA) was founded in 2001. RATA was established to implement the management and disposal of radioactive waste generated by INPP during the decommissioning process. The main functions of RATA are to manage and dispose all the radioactive waste transferred to the Agency, assuring nuclear radiation protection; and to be the operator of storage facilities and repositories assigned to the Agency. Management of radioactive waste is directly related with the nuclear and radiation safety. So, RATA's activity shall be licensed by the regulatory bodies, namely State Nuclear Power Safety Inspectorate (VATESI) and Radiation Protection Centre.

4.3. STATE NUCLEAR POWER SAFETY INSPECTORATE (VATESI)38 The State Nuclear Power Safety Inspectorate (VATESI) was established in 1991. VATESI is the regulatory and supervisory institution of nuclear safety, which sets safety requirements, control whether they are complied with, issues licences and permits, performs safety assessments of nuclear facilities and conducts inspections and verifications. VATESI mission is to perform the state regulation and supervision of safety at nuclear facilities in order to protect the public and the environment against harmful effects of nuclear and radiation events and accidents.

37 Republic of Lithuania law on the management of radioactive waste - May, 20 - 1999 amended on 26

October 2004 - http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=248129 38 http://www.vatesi.lt/index.php?id=3&L=1

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23

4.4. CENTRAL PROJECT MANAGEMENT AGENCY (CPMA)39 The Central Project management Agency (CPMA) was established in 2003 by merging two organisations: the Central Financing and Contracting Unit (CFCU) and the Housing and Urban Development Fund (HUDF). The CFCU was responsible for the implementation of projects financed by EU PHARE/ ISPA programmes in the role of the Contracting Authority and HUDF was implementing programmes financed by International Financing Institutions (IFIs) such as financed from World Bank, EIB, EBRD. The CPMA manages EU Funds under the indirect centralised management mode of budget implementation, which involves the delegation of selected tasks by the European Commission to this national agency. Delegation is subject to application of standards for accounting, audit, internal control and procurement procedures which offers guarantees equivalent to internationally accepted standards (Articles 53a, 54 to 57 of Regulation N^1605/2002)40. The CPMA is the contracting authority and ensures the implementation of investments and management of project preparation, selection, appraisal, procurement, contracting and control in full accordance with EU legislation and national Lithuanian law41.

39 http://www.cpva.lt/agency/about/ 40 European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in

Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges 41 European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance

Programme data" (COM (2011) 432 final)

No. Title Amount in Euro Grant

Recipient

Approval Date

(last

amendment)

Signing Date

(Original

Grant)

Contractor Signing Date

Contract Value in Euro

(includes paid contract

amounts)

Current Disbursed

Value in Euro Status of Project

Mode of

Procurement

PMU Phase 1, including A1 Final Decommissioning Plan (FDP) and Decommissioning Project documentation, DASR and DEIAR (DP(0))

Consortium of National Nuclear Corporation Limited (UK), Tractebel Engineering S.A.(Belgium) and Vattenfall Power Consultant AB (Sweden)

10-Dec-01 13,627,751.13 13,627,751.13 Completed Competitive

Legal assistance to INPP for preparation of PMU Phase 1 contract Masons Solicitors (UK) 22-Jun-01 75,618.97 75,618.97 Completed Direct Selection

Legal assistance to INPP for preparation of PMU contract amendment No. 3 for 2005 Pinsent Masons Solicitors (UK) 13-Dec-04 42,832.97 42,832.97 Completed Direct Selection

Unallocated n/a - - n/a

B5 Steam boiler station (SBS) SNC-Lavalin Megadex Sp. z.o.o. (Poland) 02-Jul-03 6,700,629.50 6,700,629.50 Completed Open

B5 Heat only boiler station (HOBS) SNC-Lavalin Megadex Sp. z.o.o. (Poland) 02-Jul-03 19,892,012.49 19,892,012.49 Completed Open

B5 Steam and hot water pipeline renovation PPS Pipeline Systems UAB (Lithuania) 27-Oct-03 10,322,122.18 10,322,122.18 Completed Open

B5 Renovation of remaining heat substations UAB Kasgarija 17-May-07 1,372,527.64 1,372,527.64 Completed Open

Surveillance of quality assurance in manufacturing of CONSTOR RBMK 1500 M2 casks

TUV Rheinland Industrie Service GmbH 22-Oct-07 58,000.00 42,623.73 Implementation Direct Selection

Appointment of Adjudicator RE: B1 Contract with Nukem Mr. Peter H J Chapman 21-Dec-07 2,167.84 2,167.84 Implementation Direct Selection

for the delivery of Fuel Storage Casks, Auxiliary Equipment and Software for Ignalina Nuclear Power Plant

GNB GESELLSCHAFT FUER NUKLEAR-BEHALTER mbH 24-Nov-08 4,763,500.00 4,763,500.00 Completed Direct Selection

Documentation archive system

Consortium of UAB “IBM Lietuva” (Lithuania), Oy International Business Machines Ab (Finland), UAB “Sintagma sistemos” (Lithuania)

21-Jan-04 1,904,727.65 1,904,727.65 Completed Open

Unallocated n/a 2,846,854.73 - n/a

Consortium GNS-NUKEM GmbH (Joint Venture Partnership comprising of GNS Gesellschaft fur Nuklear-Service Gmbh and NUKEM GmbH (both German)

B1

Interim storage for INPP’s spent fuel

241,354,804.00 Ignalina NPP Decommissioning Support Investment Packages

Project Code and Description

13,746,203.07 05-Apr-01 State Enterprise Ignalina Nuclear

Power Plant N/A05-Apr-01

CONTRACTS

Project Management Unit - Phase 1, 2001 - 2004

Open125,532,239.79 193,492,261.97

001

State Enterprise Ignalina Nuclear

Power Plant

B6

002C

GRANT AGREEMENTS

12-Dec-08

Implementation12-Jan-05

19-Jun-02

Delegation to Lithuania - Background Note

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Source: IIDSF - Overview of Grants Agreements, Contracts and Disbursements - EBRD - 31 March 2012

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Approval Date

(last

amendment)

Signing Date

(Original

Grant)




amounts)

Current Disbursed


Mode of

ProcurementProject Code and Description



CONTRACTS


GRANT AGREEMENTS

Solid waste management and storage facilities RWE NUKEM GmbH (German) 30-Nov-05 124,033,295.16 65,110,686.42 Implementation Open

Appointment of Adjudicator Re: B234 Contract with Nukem Mr. Peter H J Chapman 01-Dec-08 9,778.13 9,778.13 Implementation Direct Selection


C1 Purchase of coated steel pipes for the gas-main Pabrade-INPP/Visaginas

Röhrenwerk Gebr. Fuchs GmbH (Germany) 26-Apr-04 2,064,410.00 2,064,410.00 Completed Open

C2 Construction works for the gas-main Pabrade-INPP/Visaginas

PPS Pipeline Systems GmbH (Germany) with Lithuanian subcontractors

10-Sep-04 9,870,540.00 9,870,540.00 Completed Open


C3 Flue gas desulphurisation and dust collection plants, Part 1 ALSTOM Power Ltd. (Sweden) 15-Nov-05 87,500,000.00 87,500,000.00 Completed Open

C4 Project Management Unit Consortium of ENPRIMA Ltd. (Finland) and Ernst & Young Baltic UAB (Lithuania)

29-Mar-06 5,000,000.00 5,000,000.00 Completed Competitive

C5 Combined Cycle Gas Turbine Unit Iberdrola Ingeniera y Construccion S.A. Unipersonal 23-Apr-09 165,000,000.00 156,306,949.75 Implementation Open


INPP DPMU Phase 2 - 2005 (Services, equipment, consumables and operating costs and special technical and legal services) – Amendment to existing phase 1 contract


10-Dec-01 4,828,596.43 4,828,596.43 Completed Competitive*

Legal assistance to INPP for preparation of PMU contract amendment No. 3 for 2005 Pinsent Masons Solicitors (UK) 08-Dec-05 14,663.33 14,663.33 Completed Direct Selection


10-Dec-04 N/A20-Dec-04

126,000,000.00 Ignalina NPP Decommissioning Support Investment Package - Solid Waste Management and Storage Facility

11,934,950.00

4,843,259.76 State Enterprise Ignalina Nuclear

Power Plant

Ignalina Nuclear Power Plant Decommissioning Project Management Unit Phase 2 - 2005

B2/3/4

Gas Pipeline from Pabrade to Visaginas and Ignalina NPP

003A

257,500,000.00 AB Lietuvos Elektrine

004

005E Lithuanian Power Plant Environmental and Related Technical Upgrading

006

14-Jul-05

03-Dec-03 Lietuvos Dujos AB

12-Sep-11 11-Nov-05

20-May-03 State Enterprise Ignalina Nuclear

Power Plant

11-Dec-03


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Mode of




CONTRACTS


GRANT AGREEMENTS

B9/0

Pilot decommissioning project for engineering, planning and licensing of dismantling and decontamination activities at INPP Unit building 117/1

VT Nuclear Services Limited 23-Aug-07 1,937,869.31 1,937,869.31 Completed Competitive

Free release measurement systems and facilityJoint Venture Consortium consisting of VF, a.s. and ENVINET a.s.

11-Dec-06 4,085,478.00 4,085,478.00 Completed Open

Relocation of INPP Physical Protection Perimeter Section UAB 'Fima' 13-Aug-07 914,805.91 914,805.91 Completed Single

B11 Tools and equipment for radiological characterisation ENVINET a.s. (Czech Republic) 05-Jun-06 829,010.00 829,010.00 Completed Open

B16 Installation of shunt (compensating ) reactor of 180 Mvar at INPP’s substation Ast-330 Kv

Joint Venture Partnership consisting of: UAB Ekobana (leader), UAB Siemens and UAB Kauno Energetikos Remontas

17-Oct-06 10,234,148.78 10,234,148.78 Completed Open

B9/1

Decommissioning project for engineering, planning and licensing of dismantling and decontamination activities at Unit 1 Turbine Hall G1

Joint Venture Consortium consisting of : United Kingdom Atomic Energy Authority (leader), Grontmij Limited, UK, Ernst & Young Baltic UAB and SWECO BKG LSPI UAB

22-Nov-07 7,205,275.52 5,775,067.93 Implementation Competitive

B9/2

Decommissioning project for engineering, planning and licensing of dismantling and decontamination activities at Unit 2 Building V1

Joint Venture Partnership consisting of : VT Nuclear Services Limited (leader) and Nukem Technologies GmbH

14-Jan-09 3,012,168.55 1,771,323.78 Implementation Competitive

B9/5

Decommissioning project for engineering, planning and licensing of dismantling and decontamination activities at INPP boiler house building 119

Joint Venture Partnership consisting of : United Kingdom Atomic Energy Authority (leader), VNIPIET, The Lithuanian Institute of Physics, UAB "IEEC", SWECO BKG LSPI UAB, Ernst and Young Baltic UAB and Doosan Babock

05-May-09 1,697,331.54 1,495,268.15 Implementation Competitive

B9/4 INPP Unit 1 and 2 reactor dismantling and decontamination feasibility study - -

Tendering (cancelled by INPP)

Competitive

14-Dec-10

B10

25-Nov-05 State Enterprise Ignalina Nuclear

Power Plant 43,375,953.00 Ignalina Nuclear Power Plant Investment

Packages - Part 3007D


26



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Current Disbursed


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CONTRACTS


GRANT AGREEMENTS

B14 Tools for dismantling INPP Unit 1 building G1 - - Tendering (cancelled by INPP)

Open

B15 Tools for decontamination at INPP Unit 1 building G1 - -

Tendering (cancelled by INPP)

Open

B25/1Near surface repository for low and intermediate level short lived radioactive waste (Design)

JVP led by AREVA TA (including ANDRA, Lithuanian Energy Institute, Specialus Montazas and Pramprojektas)

23-Oct-09 10,492,319.00 3,151,154.52 Implementation Competitive

B13 Tools for dismantling and decontamination of Unit 1 Building 117/1 - LOT 1

JVP consisting of: JSC Sepcialus montazas - NTP and JSC Vilniaus kranai

01-Dec-09 76,531.00 76,531.00 Completed Open

B13 Tools for dismantling and decontamination of Unit 1 Building 117/1 - LOT 2 Caverion GmbH 01-Dec-09 243,080.00 243,080.00 Completed Open

B13 Tools for dismantling and decontamination of Unit 1 Building 117/1 - LOT 3

JSC SPECIALUS MONTAZAS - NTP 01-Dec-09 209,998.00 209,998.00 Completed Open


INPP-DS Phase 2 - 2006 (Services, equipment, consumables and operating costs and special technical and legal services) -Amendment to existing phase 1 contract




INPP-DS Phase 2 - 2007 (Services, equipment, consumables and operating costs and special technical and legal services) -Amendment to existing phase 1 contract



Special Legal Assistance relating to B1 Project WRAGGE & CO LLP 09-Aug-07 76,738.44 76,738.44 Completed Direct Selection

Special Technical Programme assistance relating to B1 Project EC Harris LLP 09-Oct-07 23,830.34 23,830.34 Completed Direct Selection


009

09-Dec-05

14-Dec-10

21-Nov-05

N/A

N/A

25-Nov-05

4,518,000.88


Power Plant


Power Plant

Ignalina Nuclear Power Plant Decommissioning Service: Consultancy services - Phase 2 - 2007

4,353,052.12

43,375,953.00

008Ignalina Nuclear Power Plant Decommissioning Service: Consultancy services - Phase 2 - 2006

01-Dec-06

Ignalina Nuclear Power Plant Investment Packages - Part 3007D


Power Plant

06-Dec-06


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(last

amendment)

Signing Date

(Original

Grant)




amounts)

Current Disbursed


Mode of




CONTRACTS


GRANT AGREEMENTS

INPP - DS Phase 3 - 2008 (Services, equipment, consumables and operating costs)

Consortium of National Nuclear Corporation Limited (UK), Belgatom S.A. (Belgium) and SwedPower International AB (Sweden)

30-May-08 4,407,505.44 4,407,505.44 Completed Competitive*

Legal Services WRAGGE & CO LLP 09-Aug-07 124,545.36 124,545.36 Completed Direct Selection*

Quantity Surveyor Services EC Harris LLP 28-Dec-08 124,595.95 124,595.95 Completed Selection from a shortlist

Unallocated n/a 643,353.25 - n/a

Procurement Consultant Mrs. Szajner 25-May-09 39,440.00 32,362.02 Implementation Direct Selection

Territorial planning and EIA for 400 kv (Consultancy Services)

Sweco International AB in association with Sweco Lietuva UAB

22-Oct-09 503,169.00 393,146.46 Implementation Competitive

Feasibility Study Alytus substation (Consultancy Services)

Sweco International AB in association with Sweco Lietuva UAB

03-Nov-09 441,000.00 441,000.00 Completed Competitive

Technical and commercial consultancy services to assist LitPol Link's PMU re procurement of contracts re design of Alytus substations

Gunpow AB 15-Jul-11 60,000.00 21,585.62 Implementation Direct Selection

Legal support in LitPol Link procurement activities.

LAWIN, Lideika, Petrauskas, Valiunas 19-Jul-11 105,558.00 10,558.00 Implementation Competitive

LitPol Link Project - Consultancy Services for Technical Design and Construction Permit for reconstruction and extension of 380 kV switchyard of Alytus 330/110/10 kV substation

URS Polska Sp. z.o.o in consortium with UAB Energetikos projektai and URS Scott Wilson Ltd, filialas

21-Feb-12 369,103.95 - Implementation Selection from a shortlist*




11-Jul-09 4,237,268.42 4,237,268.42 Completed Competitive*

Legal Services WRAGGE & CO LLP 09-Aug-07 27,360.13 27,360.13 Completed Direct Selection*

Quantity Surveyor Services EC Harris LLP 28-Dec-08 65,363.00 65,363.00 Completed Selection from a shortlist*




10-Nov-10 3,732,170.92 3,732,170.92 Completed Competitive*

Quantity Surveyor Services EC Harris LLP 28-Dec-08 10,442.33 10,442.33 Completed Direct Selection*

Legal Services WRAGGE & CO LLP 09-Aug-07 22,775.78 22,775.78 Completed Selection from a shortlist*



Power Plant

011A

Consultancy Services for the Initial Phase - Parts 1 & 2 of the Project Power Interconnection between Lithuania and Poland (the LitPol Link Project)

2,000,000.00

013Ignalina Nuclear Power Plant Decommissioning Services - Consultancy Services - Phase 3 - 2010

N/A04-Dec-0920-Nov-09

01-Oct-08 N/A15-Apr-11

N/A12-Dec-08

18-Dec-07

29-Dec-08


Power Plant


Power Plant

Ignalina Nuclear Power Plant Decommissioning Services - Consulting Services - Phase 3 - 2009

19-Dec-07 N/A

Lietuvos Energija AB

010Ignalina Nuclear Power Plant Decommissioning Services - Consulting Services - Phase 3 - 2008

012


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Signing Date

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Current Disbursed


Mode of




CONTRACTS


GRANT AGREEMENTS



11-Nov-11 2,517,103.65 540,159.70 Implementation Competitive*

Consultancy Services Support to INPP Contractor claim on decommissioning project B1 (Legal Support)

WRAGGE & CO LLP 24-Mar-11 21,217.09 - Implementation Selection from a shortlist*


TOTAL of signed GRANTS 727,626,222.83 TOTAL SIGNED CONTRACTS 714,693,123.02 568,770,005.46 * = extension of existing contract

TOTAL UNALLOCATED 12,933,099.81

TOTAL SIGNED CONTRACTS AND UNALLOCATED 727,626,222.83


Recipient

Approval or

Signing Date

(last

amendment)

Signing Date

(Original

Grant)




amounts)

Current Disbursed


Mode of

Procurement

Consultancy Services

Equipment including consumables and operating costs

Special Technical and/or Legal Services

Unallocated n/a 2,500,000.00 n/aTOTAL of GRANTS to be Approved 2,500,000.00 2,500,000.00

GRAND TOTAL 730,126,222.83

Ignalina Nuclear Power Plant:Consultancy services in 2012 as an integral part of Phase 4 (2011 -2013)


Power Plant 02-Dec-10

2,500,000.00

GRANT AGREEMENTS FOR ASSEMBLY APPROVAL

14-Dec-10 N/A

GRANT AGREEMENTS

Ignalina Nuclear Power Plant Decommissioning Services - Consultancy Services - Phase 3 - 2011

014

CONTRACTS

TOTAL UNALLOCATED

015

Project Code and Description


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ANNEX B - DECOMMISSIONING PROJECTS CURRENT PROJECTS

PROJECT CODE

PROJECT NAME THE VALUE OF CONTRACT (LT)

IMPLEMENTATION PERIOD/ DELAY

B1 Interim Spent Fuel Storage Facility (ISFSF) 667 548 303, 80 Start: 2005-01-12 Delay: 44 months.

В2/3/4 Solid Waste Management and Storage Facilities (SWMSF) 428 262 161, 23

Start: 2005-11-30 Delay: B2 -54 months, B3/4 - 47 months.

B9/1 INPP Unit 1 Turbine Hall Equipment Decontamination and Dismantling Project Development

25 790 020, 00 Start: 2007-11-22 Equipment dismantling works have been started

B9/2 INPP Building V1 Equipment Dismantling and Decontamination Design Development

11 639 389, 00 Start: 2009-01-14 The project is delayed

B9/5 INPP Boiler House Equipment Dismantling and Decontamination Design Development (119 building)

6 797 000, 00 Start: 2009-05-05 Equipment dismantling works have been started

B12 Equipment and Consumables for In-line Decontamination at Unit 1

5 140 500, 00 Start: 2010-01-12

B19 Landfill Facility for Short-lived Very Low Level Waste

21 354 637, 50 Start: 2007-12-29 Delay: 24 months.

B25/1 Near Surface Repository for Low and Intermediate Level Short-lived Radioactive Waste (Design)

35 911 050, 00 Start: 2009-10-23 Delay: 4 months.

UP01 (B9/4)

INPP Unit 1 and 2 Reactor Dismantling and Decontamination Feasibility Study

- Start: 2010-08-23

Source: http://www.iae.lt/en/en/activity/decommissioning-projects/current-projects/

30

Delegation to Lithuania - Background Note _______________________________________________________________________________________ COMPLETED PROJECTS

PROJECT CODE

PROJECT NAME THE VALUE OF CONTRACT (LT)

IMPLEMENTATION PERIOD ACCORDING TO THE PROJECT/FACTUAL

В5 Reliable Heat and Steam Source for Ignalina NPP and Visaginas

В5/1 Steam Boiler Station (SBS) 23 135 933, 54 Start: 2003-07-03 Completion: 2004-11-26 / 2005-09-01

В5/2 Heat Only Boiler Station (HOBS) 68 683 140, 76 Start: 2003-07-02 Completion: 2004-12-21 / 2005-12-13

В5/3 Rehabilitation of Pipeline from HOBS to INPP

14 787 906, 28 Start: 2003-11-27 Completion: 2004-10 / 2005-11

В5/4 Internal Installations inside INPP 20 852 313, 73 Start: 2003-11-27 Completion: 2004-10 / 2005-11

В5/5 Modernization of INPP District Heating Distribution System

4 739 063, 44 Start: 2007-06-19 Completion: 2009-01-15 / 2010-10-25

В6 Modernization of the Existing Technical Documentation Archive

В6/1 Archive Building 5 213 226, 50 Start: 2003-08-29 Completion: 2004-07-15 / 2005-08-25

В6/2 Archive System 6 576 644, 84 Start: 2004-01-21 Completion: 2005-01-20 / 2005-09-06

В8 Afterburning of Unit 1 Nuclear Fuel in Unit 2 Reactor

Start: 2006-12 Completion: 2009-12

B9/0 INPP Building 117/1 Equipment Decontamination and Dismantling Project

6 153 947, 85 Start: 2007-08-23 Completion: 2011-10-28

B9/12 Update of U2DP0 / DSAR for INPP Unit 2 Final Shutdown and Defuelling Phase

3 691 500, 00 Agreement with LEI: Start: 2008-12-18 Completion: 2010-01-14/2010-09-14 Agreement with EWN: Start 2009-06-03 Completion: 2010-04-02

В10/1 Relocation of Ignalina NPP Physical Protection Perimeter Section


31


В10 Free Release Measurement Facility

(FRMF) 14 106 338, 44 Start: 2006-12-11

Completion: 2002-04-28/2010-08-16

В11 Supply and Installation of Tools and Equipment for Radiological Characterisation of INPP


В16 Controlled Shunt Reactor at INPP 330 kV Switchyard


В17 Decommissioning Management System and Database

12 024 945, 72 Start: 2007-05 Completion: 2008-10

В32 Update of Final Decommissioning Plan

- Performed by INPP staff Start: 2009-04 Completion: 2010-10

Source: http://www.iae.lt/en/activity/decommissioning-projects/completed-projects/

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BIBLIOGRAPHY

1. EIU Report March 2012;

2. http://en.wikipedia.org/wiki/Lithuania

3. http://www.globaltrade.net/m/c/Lithuania.html

4. http://www.emporikitrade.com/uk/countries-trading-profiles/lithuania/presentation

5. http://www.investlithuania.com/en/sectors/rnd

6. Enterprise Europe Network London - Country Profile Lithuania - April 2010

7. European Commission - Lithuania -Cohesion Policy 2007-2013

8. European Commission - European Cohesion Policy in Lithuania

9. http://www.iaea.org/About/Policy/GC/GC54/GC54InfDocuments/English/gc54inf-3-att4_en.pdf

10. http://www.world-nuclear.org/info/inf19.html

11. http://www.iae.lt/

12. http://en.wikipedia.org/wiki/Ignalina_Nuclear_Power_Plant

13. European Parliament resolution of 5 April 2011 on the efficiency and effectiveness of EU funding in the area of decommissioning nuclear power plants in the new Member States (2010/2104(INI) - P7-TA(2011)0123

14. European Commission - Commission Staff Working Paper "Nuclear Decommissioning Assistance Programme data" (COM(2011)432 final)

15. Council of the European Union - Proposal for a Council Regulation on Union support for the nuclear decommissioning assistance programmes in Lithuania - 2011/0363 (NLE) - 10771/1/12 - Rev 1

16. Ignalina NPP Decommissioning - Strategy, Progress and Costs by Peter Harrison Head of Ignalina Programme Division - Central Project Management Agency - Feb 2012 (http://www.iae.lt/news/presentations-about-inpp-activity/)

17. http://www.world-nuclear-news.org/NP-Lithuania_shuts_Ignalina_plant-0401104.html

18. Republic of Lithuania - Convention on Nuclear Safety - Fifth National Report - Vilnius 2010

19. http://www.ebrd.com/pages/sector/nuclearsafety/ignalina.shtml

20. European Court of Auditors - EU Financial Assistance for the Decommissioning of Nuclear Plants in Bulgaria, Lithuania and Slovakia: Achievements and Future Challenges

21. http://www.iae.lt/en/activity/decommissioning/

22. http://en.wikipedia.org/wiki/Greifswald_Nuclear_Power_Plant

23. http://www.decomatom.org/node/16

24. http://www.ewn-gmbh.de/ewngruppe/ewn/standort-greifswald/the-company/firmenportraet-aufgabe.html?L=1

33

http://en.wikipedia.org/wiki/Lithuania

http://www.globaltrade.net/m/c/Lithuania.html

http://www.investlithuania.com/en/sectors/rnd

http://www.iaea.org/About/Policy/GC/GC54/GC54InfDocuments/English/gc54inf-3-att4_en.pdf

http://www.iaea.org/About/Policy/GC/GC54/GC54InfDocuments/English/gc54inf-3-att4_en.pdf

http://www.world-nuclear.org/info/inf19.html

http://en.wikipedia.org/wiki/Ignalina_Nuclear_Power_Plant

http://www.world-nuclear-news.org/NP-Lithuania_shuts_Ignalina_plant-0401104.html

http://www.ebrd.com/pages/sector/nuclearsafety/ignalina.shtml

http://en.wikipedia.org/wiki/Greifswald_Nuclear_Power_Plant


34

25. OECD/NEA workshop on Radiological Characterisation for Decommissioning Studsvik, April 2012 - EWN - http://www.studsvik.com/Documents/OECD%20semninar%202012/25.pdf

26. The Greifswald decommissioning project - Energiewerke Nord GmbH - June 2011 (http://www.iaea.org/OurWork/ST/NE/NEFW/WTS-Networks/IDN/idnfiles/CuttingTechniqueWkp-Germany2011/EWN_Project_Overview__06__2011.pdf)

27. Visaginas NPP Project - Intelligence development - a key for success - Dr Gintautas Klevinskas - Head of CC, Legal and Regulatory Environment - VAE, NPP Project Development Company - Feb 2011 (http://www.iaea.org/NuclearPower/Downloads/Infrastructure/meetings/2011-02-TM-WS-Vienna/Day-2/Klevinskas_LITHUANIA.pdf)

28. http://www.vae.lt/files/VAE_info.pdf

29. Republic of Lithuania law on the management of radioactive waste - May, 20 - 1999 amended on 26 October 2004 - http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=248129

30. http://www.vatesi.lt/index.php?id=3&L=1

http://www.studsvik.com/Documents/OECD%20semninar%202012/25.pdf

http://www.vae.lt/files/VAE_info.pdf

http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=248129